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Overview of Strategies & Stablecoins

This section of the documentation covers the DeFi Strategy and Stablecoins managed by the Reflect Money programs. You will learn about different financial product types and how they affect the corresponding stablecoin.

Stablecoins:

TickerDeFi StrategyCollateralStatusAudit(s)
USDRDelta-Neutral Funding Rate CaptureJLPNot Live1 of 2
USDXDelta-Neutral Cross Margin Rate CaptureUSDCNot Live0 of 2

Strategic Stablecoin Properties:

Non-Custodial

  • All collateral deposits are held in program accounts on the issuing network, with no access for any human party. This means all of your funds are safe from human hands.

Permissionless

  • All reflect issued stablecoins can be created and redeemed at will with no restrictions or required access controls.

Liquid

Use the liquidity of the entire collateral pool(s) for MEVless perfect rate swaps between tokens - No more LP requirements or fees!

Programmable

Easily build next-generation stablecoin fintech using Reflect Money as the infrastructure-level intermediation service in just a few lines of code.

Decentralised Finance Strategies:

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Delta-Neutral Funding Rate Capture

This strategy utilises a single-sided delta-neutral trade whereby productive capital is deposited by users or integrated programs and the equal dollar value amount short position is opened against the likewise asset. i_.e. if a user deposits 100$ of SOL then 100$ of SOL is shorted to create a zero delta position. _

This removes the exposure to price risk, i.e. price going up and down - and instead increases exposure to the funding rate - a cash settled payment which helps to balance the pricing of the markets, this payment can be determined to be the yield and or potential loss of this strategy.

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Delta-Neutral Cross Margin Rate Capture

This strategy utilises a double-sided delta-neutral trade whereby collateral is converted to cash upon deposit and used to place a trade on both sides of the same market at an identical strike price. This removes exposure to price and funding rate and increases exposure to cross-margin capital demands.

Cross-margin capital rates are determined by how many people are leverage trading across all markets on the perpetual exchange. _This demand to trade increases the demand for cash and thus increases the yield paid to those who deposit cash into the markets. _

Frequently Asked Questions (FAQs)